TRANSFER DISPUTED

New Zealand Herald, Volume LXXV, Issue 23075, 28 June 1938, Page 12

TRANSFER DISPUTED

A NEWTON PROPERTY SEQUEL TO BANKRUPTCY A motion to set aside a gift of property alleged to have been made by a bankrupt to his sisters was brought before Air. Justice Reed in the Supreme Court yesterday. The application was made by Mr. Nowbery on behalf of the Official Assignee, and it was opposed bv Mr. Wheaton on behalf of Airs. Florence Simpson, of Now Plymouth, tlio registered owner of tlio property in "dispute. The bankrupt whs Joseph William Hodgson, of Auckland, retired butfcher, who was adjudicated bankrupt <m January 28 last. Ho was alleged to have made a transfer of a section in Burgoyne Street, Newton, valued i>t about £4OO, to two sisters of his, Mrs, Simpson and Mrs. Carrie Haslain, of Wellington, on April 15, 1037. Mr, Newbery said the petitioning creditor, who was the only creditor, had obtained judgment against the bankrupt for malicious prosecution and slander. Bankrupt did not defend the action. The application was made under section 75 of the Bankruptcy Act and also under statuto Elizabeth xiii, C.5. • Section 75 laid it down that certain transfers of property wore void ns against the Official Assignee if the transferror wan adjudicated bankrupt within one year thereafter. Me argued that this was not.a transfer made in good, faith and for valuable consideration, and the Official Assignee was entitled to an order, vesting the property ill him and declaring the transfer void. Mr Wheaton Hubmtited that this transfer wns not a settlement within •the meaning of the Bankruptcy Act. The title under the l.and Transfei Act wns cksolute and indefeasible, and there wns no suggestion of fraud against Mrs. j Simpson or Mrs. Haslain. The case was adjourned to enable counsel to submit further authorities to His. Honor.